At the November 13, 2020, Finance and Economic Resiliency Committee (FERC), meeting the Parking Department presented an update on the status of the Department.  The report was at the request of the FERC following City Commission approval of a $1.2 million dollar transfer from the General Fund in Fiscal Year 20/21, to help the Parking Department bridge the budgetary gap to retain 17 full time employees in the Enforcement Division (instead of converting them to part-time and outsourcing 50% of the part-time enforcement officers).

At the meeting the Department was directed to return to the FERC with a plan detailing how the Department will become self-sustaining and not need additional transfers from the General Fund for future fiscal years. 

The FY 2021 Parking Department budget made several revenue assumptions based on the projected financial impact of the COVID-19 pandemic.  Regrettably, COVID-19 cases continue to increase and threaten the City’s economic recovery.

Revenue:  Despite continued increases in COVID cases, parking revenue exceeded Q1 projections as depicted in the chart below:

Expenses:  Due to the lingering effect of the pandemic, the Department closely monitored staffing levels, initially reinstating all furloughed full-time enforcement officers to staff the division on a 24/7 basis.  Part-time furloughed employees are being gradually reinstated to supplement full-time staffing, adding coverage during peak hours.  Additionally, vacant positions in all City departments have been frozen, helping the Parking Department to save on staffing expenses.

Results:  The Department generated a two million dollar surplus over budget from increased revenues and decreased expenditures.  This amount is anticipated to assist in supplementing revenue should the Department not reach the 75% projected revenue for the remaining quarters of this fiscal year

The following will serve to make the Department profitable so as to not need support from the General Fund:

1. Reduced full time enforcement employees by almost 50% (from 33 FY 2020 to 17 FY 2021);

2. Reduced positions in all other Parking divisions;

3. Not filling vacant positions until the Department meets projected revenues;

4. Control expenditures to protect the two-million-dollar ($2 million) cushion built during the Q1 of this FY but utilize, as needed, should revenues fall short of the projected 75% for the remaining quarters;

5. Carry over any surplus to next FY to assist with any pandemic related budget shortfalls;

6. Maintain high employee productivity to increase payment compliance;

7. Maintain open lines of communication with Unions and staff;

8. Provide staff with necessary tools to maximize productivity and promote good unit morale;

9. Right-size part-time employee levels to meet operational and enforcement responsibilities while remaining within budget; and

10. Continue regular meetings with OMB to review financial status and promote financial stability.

This first quarter Parking Department efforts resulted in a savings of $2 million to supplement any budgetary shortfalls in the remaining quarters.  The Administration will provide the FERC a status report at the end of quarter two.